Understanding Personal Name Investments 

Buying investment property in a personal name is attractive because

  • Negative gearing - the investor can offset the loss from the negative geared property against their personal income, and so reduce their personal tax.

  • Loans – A lending ratio of up to 90% of the purchase price is available to investors who buy in their personal name. Note: This only applies to investors on a salary (PAYG) and for a small number of properties. Otherwise, a lending ratio of 80% applies.

  • Transfer taxes - If the property is already in a personal name, it is best to not transfer it to a structure because stamp duty is payable and capital gains tax might also be payable.

Benefits of Investing Through Personal name

  • Easy to set up and manage as income and capital gains are included in the individual's own tax returns.

  • Easier to administer as there is much less paperwork in comparison to other structures.

  • Much less expensive to set up and run.

  • More tax effective, especially if the investment is negatively geared.

  • Tax advantaged if the investment is the family home.

Want to understand if you can buy property in your personal name? Click the following links to contact our specialists 

Sapient Financial

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